Gold Technical Report: Gold ended the week with a small DOJI closing just above the 10 DMA around 1927. As long as the 50DMA @ 1830 is trading over 200 DMA @ 1778, the medium term trend looks intact. The long term support stands at 200 DMA below which the trend may turn bearish. The short term Stochastics Oscillator is at 62 and Relative Strength Index is at 66.
Silver Technical Report: The silver prices, witnessed selling pressure on last day of the week after 3 days of continuous rally before it. The medium term trend looks up as the prices continue to trade above 50 DMA @ 23.13. As 50 DMA has crossed above 200 DMA @ 20.98 on daily charts, gives indication of Buy on Dip. The Short term Stochastics Oscillator is at 61 and RSI momentum near 52.
Fundamental Report: The key takeaway from Friday’s PCE inflation index report was that the core PCA index declined in December by 0.3%. The preferred inflation index used by the Federal Reserve was at 4.7% year-over-year in November and declined to 4.4% year-over-year last month. will be critical components used by the Federal Reserve next week and will most likely strengthen the conviction of hawkish Fed officials to maintain their extremely aggressive monetary policy. Currently, the Federal Reserve’s forward guidance is composed of additional rate hikes and maintaining elevated rates for a longer time. The most likely outcome is that the Fed will raise the rate by ¼% at the next two meetings. The Federal Reserve has stated they continue to work to reach its inflation target of 2%. A vast majority of market participants continue to believe that the Fed will backpedal on its commitment to keep rates elevated through 2023. The Federal Reserve is also on record according to their most recent economic projections released in December of last year that they expect to take their benchmark rate just above 5% and not reduce that level for the entire year and possibly into the first or second quarter 0f 2024.